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Emergency Covid loans carry high mis-selling risk, banks fear
Rapid roll-out of government schemes raises legal fears over inequitable client treatment
![Dollars Dollars](/sites/default/files/styles/landscape_750_463/public/2020-04/Dollars%20Getty%20913434770.jpg.webp?h=96437c8b&itok=HBb9d3LI)
The emergency loans and relief packages being rolled out to firms and individuals affected by the coronavirus lockdown could come with a heavy price for banks: the risk of fines and lawsuits if they offer them to customers inequitably.
During ordinary times, banks are required to rigorously assess whether new loan products meet client suitability criteria – chiefly, whether a customer actually needs the product, can afford it and that it is offered on a nondiscriminatory basis.
But the
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